The COVID-19 Pandemic and Corporate Dividend Policy

Abstract This article shows that, for major equity markets, the proportion of index values attributable to first 5 years dividends dropped substantially in quarter 2020 and that this drop was not reversed by end year. In cross section, breakdown dividend smoothing due COVID-19 less severe firms with higher operating cash flows more positively coskewed stock returns, it pronounced those leverage financial sector. Heavy cutters also experienced a substantial increase exposure systematic risk.